SHREVEPORT, La., Oct. 27, 2004 (PRIMEZONE) -- Stock-Letter-Daily.Com (http://www.stock-letter-daily.com (an affiliate site of StockPickReport, the web's only non-mainstream stock rating service), rates Sirius Satellite, Citigroup Inc., Level 3 Communications, SanDisk Corp.
STOCKPICKREPORT RATINGS:
Sirius Satellite (Nasdaq:SIRI) -- BUY
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=SIRI
Citigroup Inc. (NYSE:C) -- WEAK SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=C
Level 3 Communications (Nasdaq:LVLT) -- WEAK BUY
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=LVLT
SanDisk Corp. (Nasdaq:SNDK) -- WEAK SELL
http://www.stock-letter-daily.com/rating.asp?format=single&ticker=SNDK
STOCK COMMENTARY:
Wednesday, October 27, 2004
StockPickReport Commentary
$100 Oil Part 2
Last night we asked your opinions about $100 oil. Many of you replied with insight we had not considered. Here are some of the answers we got followed by our comments.
Member Comment: "I cannot imagine all of the ramifications ($100 oil) would entail but I'm sure people would have to buy less exercise machines as they learned to walk more again."
Member Comment: "I believe $100 oil, if it happened within a year, would dramatically change the dynamics of the U.S. stock market, i.e., utilities would be drastically cut out of the capital marketplace and would suffer; nuclear power would come into vogue again; the auto manufacturers would be severely undercut and forced to build fuel-efficient cars which would create a new wave of autos for the industry and a new investment dynamic after they hit multi-year lows; U.S. airlines would be forced to merge into four large entities, following a series of bankruptcies; every U.S. manufacturer would suffer from lower profits; the stock market would drop 50%; the Middle East would become a battleground of conflict and revolution further rattling the U.S. stock market. It would not be good, and the final result would be recession and lower oil prices. On the other hand, $100 oil over 3-to-4 years would be an entirely different scenario."
Member Comment: "Yes, oil can surpass $100.00/bbl, I'm not sure just how soon. Methinks it will saw tooth upward in a pronounced uptrend for some years to come, and it will keep wild growth under control for the foreseeable future. I have written on mdbarks.com that gas will go to $5.00 per gallon and if we don't do most things right it will go to $10.00. If it happens slowly it will have less negative effect on our lifestyle."
Member Comment: "I just do not see it in my life time. It would be the end to the world as we know it today."
Member Comment: "My gut tells me we are closer to $100 barrel of oil than we are to $25+ oil. But who knows? So how can we successfully 'play' it?"
These comments are indicative of what we received. Our opinion is that oil may or may not hit $100 a barrel, but, we should all live our lives as if it ALREADY was at $100 a barrel! (On a personal note we believe there are lifestyle changes we can all make that will A) Remove or dependence on "foreign oil", B) Lower our personal energy costs, and C) Raise our standard of living. Yeah, that sounds like the "Holy Grail" of energy-policy, but we think it's all possible. If you want to hear more about that, let us know and we'll share our ideas on the subject. In fact, the energy-conservationist lifestyle is a lifelong passion of mine -- Don Harrold, that is.)
Back to your comments: All of you are correct, we think, when you say that $100 a barrel oil would change our lifestyles. We think that (like one of you mentioned) that we are closer to $100 oil than $25 oil. The question of, "how to successfully 'play' it" is an interesting issue. One member asked us if you could trade oil "outright" like a stock. Well, yeah, if you trade commodities. However, commodity trades are not our forte'.
What you can do, though, is trade oil stocks, or oil-sensitive industries (like autos, or airlines). In the auto sector we like Tower Automotive (NYSE:TWR) (Penny Stock pick on October 21) and we picked Hawaiian Holdings (NYSE:HA) for the Swing Trade service (HA is really Hawaiian Airlines). Those are ways to play, what we see as possibly, a short-term oil price decline.
You can find a list of energy-related stocks in our members only site. Here's a quick link to some "buy rated" energy stocks: https://www.stockpickreport.com/newmember/index.php?act=sectors&sid=75 Thanks for your comments. See you tomorrow evening!
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If the links to our ratings above do not work, please use these:
Sirius Satellite (Nasdaq:SIRI) -- BUY http://www.stockpickreport.com/rating.php?sym=SIRI Citigroup Inc. (NYSE:C) -- WEAK SELL http://www.stockpickreport.com/rating.php?sym=C Level 3 Communications (Nasdaq:LVLT) -- WEAK BUY http://www.stockpickreport.com/rating.php?sym=LVLT SanDisk Corp. (Nasdaq:SNDK) -- WEAK SELL http://www.stockpickreport.com/rating.php?sym=SNDK